A member of a cartel like OPEC has an incentive to
A) support equal production quotas for each member.
B) argue for larger production quotas for each member of the cartel.
C) abide by its individual production quota.
D) agree to a low cartel production level and then produce more than its quota.
D
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On a graph, high correlation between the variable measured along the x-axis and the variable measured along the y-axis
A) means that changes in the variable measured along the x-axis must cause changes in the variable measured along the y-axis. B) means that changes in the variable measured along the y-axis must cause changes in the variable measured along the x-axis. C) means that changes in either variable must cause changes in the other variable. D) does NOT mean that a change in the variable measured along the x-axis must cause a change in the variable measured along the y-axis.
Price elasticity is unit elastic at the midpoint of a linear, downward-sloping demand curve
a. True b. False